Oil market outlook: prices seen nudging higher

Despite recent falls in the oil price, most analysts see prices rising in the second half of the year, with spikes to $100 a barrel not ruled out, finds Lianna Brinded

Oil prices, which have largely remained in a $70 to $85 per barrel (bbl) range so far this year, are predicted to edge higher in the second half of 2010 on the back of gradual global economic recovery and continued healthy demand from Asia, say analysts.

Although oil prices have recently fallen below $70/bbl to the lowest levels since July 2009, many analysts believe fundamentals are strong enough to support oil prices at higher levels in the second half of the year and into 2011. According to a